Global Smart Building Market Overview
The key driver impacting the Smart building market is the growing government regulations related to increasing the energy efficiency of buildings. For instance, Government initiatives like the E.U.’s Energy Performance of Buildings Directive (EPBD) and the U.S. Commercial Building Initiative (CBI) is compelling businesses and public authorities to intensify their efforts towards bounding energy consumption and greenhouse gases emissions at the community level. The rising awareness of space utilization and smart infrastructure is encouraging market demand. Moreover, the increasing adoption of IoT-enabled building energy management systems contributes to Smart building market demand later.
According to Value Market Research, the global Smart Building market size was valued at about USD 66.5 billion in 2020 and is estimated to grow at a CAGR of around 11% during the forecast period 2021 to 2027.
The rising government initiatives on adopting smart solutions will likely augment Smart building demand in the forecast period. For instance, The U.S. Green Building Council started the 'LEED' program in association with the Bank of America Charitable Foundation, which supports the local governments searching for sustainable solutions. There are huge concerns related to high Energy Consumption in the buildings, which leads to the increased adoption of smart solutions. However, the dearth of cooperation among standard bodies hampers the market in the long run. In addition, high implementation cost is impeding the market growth. Nevertheless, the market trends, such as the appearance of the 5G technology and the growing smart city trend, might provide considerable opportunities to the market's leading players.
The Smart building market is widespread, with many international and local players. The market leaders make use of diverse strategies such as extending product portfolio, amalgamation, acquisitions, product upgrades, contracts to strengthen their market share globally. For instance, in August 2019 - a global vendor in smart building technology and services, Honeywell International, Inc. had introduced the next generation of enterprise building integration (EBI), command and control suite (CCS), and digital video manager (DVM). It is a group of solutions facilitated by the Honeywell Forge for Buildings platform. These solutions can enable facility efficiency, streamline complex functions, and deliver savings across an enterprise. The market players in the report are Advantech Co. Ltd, Honeywell International Inc., ABB Ltd., IBM Corporation, Siemens AG, Schneider Electric SE, Johnson Controls International PLC, Hitachi Ltd, Sony Corporation, IBM Corporation, and Cisco Systems.
In this research report, the Smart building market is segmented by component, building type, and region.In this research report, the Smart building market is segmented by component, building type, and region.
Analysis by Component:
By component, the report is divided into services and solutions. The energy management solutions segment dominates the component segment with the highest share in 2020. It is due to the increasing need to reduce and monitor the energy consumption of the building. Moreover, smart building energy management solution helps in reducing operational expenses which is an ongoing challenge for managers and owners of schools, multistory buildings, or building complexes contribute to the growth of the smart building energy management solutions segment.
Analysis by Building Type:
By building type, the report is segmented into residential, commercial, and industrial. The commercial segment dominates the building type segment with the highest share in 2020. It is due to the high demand for suitable and specially made solutions for optimized energy performance. Also, the need to reduce building energy consumption without compromise of security and comfort and improving the energy performance of the commercial buildings leads to high market demand from the commercial sector.
Analysis by Region:
In the regional overview of the global Smart Building market, the North America region dominates with the largest market share in 2020. It is due to the appearance of the latest smart building solutions and the massive adoption of advanced technologies, like IoT, big data, cloud computing, data analytics, deep learning, and artificial intelligence for energy, reducing operational expenditures in U.S. and Canada. The growing efforts to meet strict global regulations and sustainability standards in Canada and the U.S. drive more market demand in this region. Moreover, the growing investment by U.S. government organizations into smart building measures, such as building controls and building systems integration initiatives, contributes to the tremendous market growth across the North America region.
Market Segmentation covered in the Report:
- Building infrastructure Management
- Parking Management System
- Smart Water Management System
- Elevators and Escalators Management System
- Security and Emergency Management
- Access Control System
- Video Surveillance System
- Safety System
- Energy Management
- HVAC Control System
- Lighting System
- Network Management
By Building Type
- Support and Maintenance
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
This market research report has been produced by gathering information on the basis of primary and secondary research. Secondary research has been done by using various sources which include (but not limited to) Company Websites, Paid Data Sources, Technical Journals, Financial Reports, SEC Filings, and other different industry publications.
If specific information is required which is not currently within the scope of the report, it can be provided as a part of customization.